If they want to bring him on as a regular, they have to have used him a certain amount of episodes (ie nearly all) the previous season. Is that the case? If they want to bring him on a regular, they would also have to negoiate the contract. So, assuming he's telling the truth, I'd say it's very likely it's returning for a 3rd series. It'll have a tough time on the CW, I suspect.

Even a lot of the regulars aren't in nearly all the episodes (most of them just got 12), but I'd say he's the most frequently seen recurring. Also, he has his own rabid fan base. I'm going to add a little hope to my habitual gloom and doom. Thanks RavenU, TamaraC, gossi.

One of the Veronica Mars regulars only got 12 episodes this season, another got 16 (I think), and only three of them are in every episode. My understanding is that they would have liked to use them all more, but there are budget constraints that meant they had to cut down on the episode contracts for several of the regulars this season. I do know that with regulars, the number of episodes they will be in is decided at the beginning of the season, whereas with people like Tina Majorino and Michael Muhney I think they get to decide as they go along.
So I'd imagine with Hurley the issue is not just that he's a regular but that he was contracted for some large number of episodes at the start of the season, and they have to honor that now.

VM's budget forces them to only be able to use Logan, Keith and Veronica every ep. Most everyone else disappears and reappears from week to week. Sometimes it's large gaps (like Weevil and Wallace), other times it's like, every other week.

Budget and network influence I think is responsible for a lot of the times the show would seem (to some) to fall short.

I think with Lost they are supposed to try and use regulars every week, however they can never have every single regular with a substantial amount of lines, so they usually only get one or two, or are just seen during a montage overlaid with uplifting music.

gossi, did that rule about new regulars apply to all TV shows or just Veronica Mars? Or the new network? I'm assuming it isn't all shows if there was a new regular almost every season on Angel who had only appeared in the last few episodes of the previous season (i.e. Gunn season two, Fred season three, Conor season four).

I don't know of any rule that says someone has to appear as a recurring actor before they can be signed on a series, whether it's Veronica or any other show. Tessa Thompson was a regular on Veronica Mars this season, never having appeared before. There were three new regulars on Lost this season, and only one of them (Michelle Rodriguez) had appeared on the series before, and only for one season.

As for Sheriff Lamb becoming a regular? Sounds great to me.

I have to admit, though I know it's because of a budget issue, I love that Veronica Mars uses it's supporting cast in the way they do. Too many shows force every character onto an episode because they are a regular, and it often feels forced. For instance, on Buffy, there were several episodes were I felt this was the case with Spike and Anya, who would pop up for a somewhat out of place scene that didn't feel like part of the story being told that week. Better to use them when they actually play more of a role in the episode and get more to do.

Michael Muhney's actually posted on this LiveJournal community over here, and mentioned this interview which was linked to the same community just before his post. Nothing official on S3, nor on Michael being a regular. Thought I should bring this over here, since the interview's made its way here too, and y'all are having the same reaction that the Don Lamb fans were having on the LJ community. Carry on!

"whereas with people like Tina Majorino and Michael Muhney I think they get to decide as they go along."

a lot of the time they sign recurring characters to a set number of episodes - like Charisma this season signed a contract for 6 (or maybe it was 8) episodes - Sarah Thompson and Mercedes McNab did the same thing on the final season of Angel. Tis also why Stephanie Romanov was credited at the beginning of 'Peace Out' and not at the end when it should've been a suprise - she was contracted to be a 'guest star' for 10 episodes... and it meant that she couldn't be downgraded to a 'co-star'... so her name had to be put up front, or else more money would have had to be paid.

I don't know if this clears things up, but there is an interview with Rob Thomas on UPN.com where he states that Muhney isn't signed and that he could walk at any time. He said he wished they could get him a deal.

In the same interview, he stated(I could be wrong on this) that if you are signed to a contract of 10 or more episodes that they put you in the credits.

My guess is if they are negotiating a deal for him to be a regular that they feel pretty good about next year.

(Minor spoilers for VM episodes already aired in North America--just fair warning to louie93 in the UK :).) Lamb is a fun character, and he has been in enough episodes this season to qualify as a "Veronica Mars" regular. Plus, he has gained some depth this year, particularly his siding with Veronica and Duncan in "Nobody Puts Baby in a Corner." Nevertheless, my number one choice for an addition to the slate of regulars is still Tina Majorino, who makes Mac's angsty-intellectual appropriately snarky and adorable at once. (And the look of anguish on Mac's face after Beaver left in "Plan B"? *shivers*) Or maybe make both of them regulars, and add in Amanda Noret's Madison Sinclair to play up Lamb's relationship with her and the switched-at-birth have/have-not distinction between Madison/Mac. The show has a Cordelia in Jackie (and a Willow in Mac); in Madison it can have a Harmony, too.

There's an interview with Michael Muhney in the Veronica Mars podcast this week (episode 2), and he says that the announcement will be May 19th, Rob Thomas will know May 18th, and before then any rumor that you hear is not based on official news because no actual decision has been made yet.
P.S. The podcast is really good, and this episode is better than the last.